Friday, November 26

ANALYSTS’ VIEW-Trump goes into quarantine, awaits coronavirus test results

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SINGAPORE — US stock futures dipped on Friday after President Donald Trump said he and his wife will quarantine after a close aide, Hope Hicks, tested positive for the coronavirus. Trump said they are awaiting test results.

Futures for the S&P 500 fell 0.39% in Asian trading after the news, extending earlier losses, while Treasury yields remained broadly unchanged. Here are analysts’ comments: SHANE OLIVER, HEAD OF INVESTMENT STRATEGY, AMP CAPITAL, SYDNEY “He wouldn’t be the first leader to have tested positive for coronavirus.

“The election is now underway so it may add to the uncertainty, but doesn’t change the fundamental outlook.

“There might be a sympathy vote for Trump if he gets the coronavirus.

“The market’s already a little bit on edge because of the upcoming election and the failure of talks to result in a new fiscal stimulus.

“You can imagine all sorts of scenarios here. If he tests positive and then just shows mild symptoms, it will be over in a few days. If he gets ill and has to go to hospital, the market will be a lot more concerned. Obviously, to the extent campaigning comes to a halt, it might increase fears that he might lose the election.

“Generally speaking, the market prefers the incumbent to win and the general preference has been for Trump to win because he will mean lower taxes and less regulation than a Biden presidency.